Examples of ICF Notes in a sentence
We valued the contingent put option embedded within ICF’s 12.50% Senior Notes due 2022 (the “2022 ICF Notes”) using a valuation technique which reflects the estimated date and probability of a change of control, the fair value of the 2022 ICF Notes, and a credit valuation adjustment reflecting our credit spreads.
Interest on the ICF Notes will accrue at the rate of 12.50% per annum and be payable semi-annually in arrears on December 15 and June 15, commencing on June 15, 2017.
We valued the contingent put option embedded within Intelsat Connect’s 12.50% Senior Notes due 2022 (the “2022 ICF Notes”), using a valuation technique which reflects the estimated date and probability of a change of control, the fair value of the 2022 ICF Notes, and a credit valuation adjustment reflecting our credit spreads.
As a result, remaining unamortized debt issuance costs on the exchanged 2018 Luxembourg Notes will be amortized over the remaining term of the newly issued 2022 ICF Notes.
The ICF Notes will also be structurally subordinated to all of the existing and future liabilities of ICF’s subsidiaries, including the liabilities of Intelsat Jackson under Intelsat Jackson’s Secured Credit Agreement and existing notes, and structurally senior to all indebtedness of Intelsat Luxembourg, including Lux Notes not accepted in the Exchange Offers.
In addition, prior to June 1, 2018, ICF may redeem all or a portion of the ICF Notes at any time at a price equal to 100% of the principal amount of the ICF Notes redeemed plus a customary make-whole premium as of, and accrued and unpaid interest to but excluding, the redemption date.ICF was formed by Intelsat Luxembourg in connection with the Exchange Offers.
In the near term, ICF expects to hold the Lux Notes obtained by it in the Exchange Offers and to use the income received on such notes to finance interest payments on the ICF 2022 Notes.The ICF Notes will be ICF’s senior unsecured obligations, ranking equally in right of payment with all of its existing and future senior indebtedness and senior to its existing and future subordinated indebtedness.
On or after June 1, 2018, ICF may redeem all or a portion of the ICF Notes at any time at a price equal to 100% of the principal amount of the ICF Notes redeemed, together with accrued and unpaid interest to but excluding the redemption date.
In connection with the 2021 Luxembourg Exchange, we recognized a net gain on early extinguishment of debt of $609.8 million, consisting of the difference between the carrying value of the 2021 Luxembourg Notes exchanged and the fair value of the 2022 ICF Notes issued and the total cash paid (including related fees and expenses), together with a write-off of unamortized debt issuance costs.
The ICF Notes will be effectively subordinated to ICF’s existing and future secured indebtedness to the extent of the assets securing such secured debt.